Correlation Between Aesapar Fundo and Riza Akin

Can any of the company-specific risk be diversified away by investing in both Aesapar Fundo and Riza Akin at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aesapar Fundo and Riza Akin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aesapar Fundo de and Riza Akin Fundo, you can compare the effects of market volatilities on Aesapar Fundo and Riza Akin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aesapar Fundo with a short position of Riza Akin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesapar Fundo and Riza Akin.

Diversification Opportunities for Aesapar Fundo and Riza Akin

0.77

Correlation Coefficient

Aesapar Fundo  Riza Akin

Poor diversification

The 3 months correlation between Aesapar and Riza is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Aesapar Fundo de and Riza Akin Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riza Akin Fundo and Aesapar Fundo is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aesapar Fundo de are associated (or correlated) with Riza Akin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riza Akin Fundo has no effect on the direction of Aesapar Fundo i.e., Aesapar Fundo and Riza Akin go up and down completely randomly.

Pair Corralation between Aesapar Fundo and Riza Akin

Assuming the 90 days trading horizon Aesapar Fundo de is expected to under-perform the Riza Akin. In addition to that, Aesapar Fundo is 1.86 times more volatile than Riza Akin Fundo. It trades about -0.32 of its total potential returns per unit of risk. Riza Akin Fundo is currently generating about -0.35 per unit of volatility. If you would invest  7,849  in Riza Akin Fundo on September 16, 2024 and sell it today you would lose (564.00) from holding Riza Akin Fundo or give up 7.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Aesapar Fundo de  vs.  Riza Akin Fundo

Aesapar Fundo de

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aesapar Fundo de has generated negative risk-adjusted returns adding no value to fund investors. Despite weak performance in the last few months, the Fund's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Riza Akin Fundo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Riza Akin Fundo has generated negative risk-adjusted returns adding no value to fund investors. Despite latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Aesapar Fundo and Riza Akin

The main advantage of trading using opposite Aesapar Fundo and Riza Akin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesapar Fundo position performs unexpectedly, Riza Akin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Riza Akin will offset losses from the drop in Riza Akin's long position.

The idea behind Aesapar Fundo de and Riza Akin Fundo pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.